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Deal of the Week

CBL & Associates Properties, Inc. secured $288.1 million in new financings and an $85.0 million term loan that will address all of the company’s maturities for 2008. The deals included a $164.0 million 10-year non-recourse loan on Hanes Mall in Winston-Salem, N.C. that features a fixed-rate 6.99 percent interest rate; an $87.5 million loan on Rivergate Mall and the Village at Rivergate in Nashville, Tenn. that features a variable interest rate of 225 basis points over LIBOR and comes with two one-year extension options; and a 10-year extension and modification of an existing $36.6 million loan on Hickory Hollow Mall and Courtyard at Hickory Hollow in Nashville, Tenn. The loan now features a fixed-rate 6.00 percent interest rate, with full recourse. The lenders on these transactions included Northwestern Mutual, Aareal Capital Corp. and an unidentified retirement system. CBL used a portion of the proceeds from the financings to pay off an $84.6 million loan on Meridian Mall in Okemos, Mich. The company secured a commitment from Wells Fargo Bank for a new, $85.0 million full recourse loan on the property that will feature an initial two-year term, an interest rate of 300 basis points over LIBOR and a one-year extension option. “It’s a huge asset for us to complete our financing in a very difficult market,” said Farzana Mitchell, senior vice president of finance with CBL. “I think we executed at very favorable interest rates, and that gives us a leg up.” CBL faced approximately $400 million in loan maturities this year and has another $400 million coming due in 2009.

Other Notable Deals

Realty Income Corp. closed a public offering of 2,925,000 shares of the company’s common stock, including 225,000 shares purchased by the underwriters upon exercising their over-allotment option. Net proceeds from the offering are expected to reach approximately $75 million and will be combined with available cash to repay the $100 million outstanding principal amount of the company’s 8.3 percent monthly income senior notes, which will come due in November, and the $20 million outstanding principal amount of the company’s 8.0 percent notes, which will come due in January 2009….ING Clarion Partners LLC closed ING Clarion Development Ventures III (CDV III). The fund, which raised more than $200 million, will invest in development, re-development, joint venture, mezzanine financing and distressed asset opportunities across most commercial property types. ING will have the ability to invest up to 20 percent of the money in assets in Mexico and Canada…. Cohen Financial secured a $9.7 million debt refinancing for three mixed-use properties in Kirkland, Wash. The properties included Atcon Plaza, Rose Hill Plaza and Rose Hill Gateway. The loan featured a 30-year amortization schedule…. Holliday Fenoglio Fowler, L.P. negotiated the sale of Fossil Creek Shopping Center, a 68,492-square-foot retail center in Forth Worth, Texas, from Dunhill Partners, Inc. to Sandstone Fossil Creek Associates, LLC for an undisclosed amount. The buyer assumed an existing $8.6 million loan on the property.

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